Government to review apprenticeships incentive system

The government announced on Monday a strategic review of the Australian Apprenticeships Incentive System amid low completion rate of apprentices.

"We know that almost half of all apprentices don't complete their training," said Skills and Training Minister Brendan O'Connor in a statement.

"Addressing the completion rate is not just vitally important for individuals and employers, but also for the Australian economy."

The Australian Apprenticeships Incentive System extends financial subsidies to employers in priority occupations who will take on apprentices.

In the review, the government will look at what the system and complementary services are doing in helping the take up and completion of apprenticeships and traineeships.

It will also review if the current system is creating a training environment that encourages women, First Nations people, people with disability and people in regional, rural, and remote communities into apprenticeships and traineeships.

The other goals of the review include:

• The impact that cost-of-living pressures is having on apprentices and trainees
• How the Apprenticeship System can best support high quality apprenticeships and traineeships, including the roles of government support, workplace conditions and culture, and employers
• How the Incentive System can be aligned with the priorities in the 2023 Employment White Paper and the Australian Government's broader economic objectives

The government has assigned the Honourable Justice Iain Ross AO and Ms Lisa Paul AO to lead the review.

"I'd like to thank Justice Ross and Ms Paul for taking on this important work. Their combined experience and knowledge will ensure a holistic and comprehensive review," O'Connor said.

The government said it is accepting written submissions until May 15. It will also establish a national programme of online and face-to-face consultations in the coming weeks.

Review of apprenticeships a 'welcome step'

National employer association Ai Group welcomed the government's announcement in a statement.

"The review is a welcome step towards ensuring the incentive regime supports the needs of a modern economy that builds a breadth of skills across broad cohorts," said Ai Group Chief executive Innes Willox.

According to the chief executive, incentives from the system are important in supporting employers to take on apprentices and trainees and in supporting them to complete their contracts.

"For an employer, the cost of supervising and training an apprentice can sometimes be prohibitive. Well-targeted financial incentives can help ease those impediments," Willox said. "For the apprentices themselves, incentives to encourage them to see their training contract out to the end will help improve completion rates, which remain stubbornly low."